O'Brien poised for second eircom bid

There is widespread speculation that the final breakup of Eircom is pending, with Esat founder Denis O'Brien reportedly increasing his bid for the company's non-mobile business.

His E-Island consortium is apparently about to up its £1.77bn bid for Eircom's fixed line and Internet businesses, which was rejected three months ago, to about £1.9bn.

If a new offer is accepted, it could mark the final disintegration of the former State monopoly, as plans are already in place to sell its mobile business Eircell to Vodafone.

O'Brien's offer would also be good news for eircom shareholders seeking a return on their investment.

Shares they originally purchased at £3.07 are currently worth £2.02. Further news on the issue is expected later today.